BASIC MANAGERIAL CONCEPTS

Helpful for Management Begineers to understand basic concepts of management .
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Even then theoretical base of knowledge is essential for developing sound practice. In fact, theory must be supplemented by practical knowledge continuously. Science and art are complementary and each supplements the other. Art reflects practical application of knowledge and it is perfected through knowledge and experimentation. Art is not only based on knowledge but it derives its inspiration through intuition, inspiration and such other purely subjective attributes. A manager is not only a scientist but also an artist.

As a scientist, he relies on the existing theory and philosophy of management and develops new knowledge, new principles and new schools of management thought. As an artist, he has to depend on his own experience, intuition and judgment while making a decision on any managerial problem and taking action on the decisions to realise the set objectives. Scientific attitude and scientific method shall be applied in problem-solving approach, e. But decision making cannot be totally reduced to science.

In reality, human judgement and experience enjoy the veto power in decision and as a decision-maker a manager is an artist.


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In the ultimate analysis, decision making, the heart of management, is an Art, to be acquired by conscious effort and practice. Theoretical teaching of medicine and engineering is almost invariably accompanied by practical work in a hospital or workshop. Getting work done through people is an art of management. It is a tough job demanding initiative, drive, tact, discretion and other higher qualities. We need artistic managerial ability to perform a managerial job. The art of management is fully reflected in the decision making capacity of a manager. Judgment and imagination are essential even in a computerised economy.

A computer cannot replace a manager in decision making. Managerial revolution has brought about separation of management from ownership in corporate management in all countries slowly but steadily.

Management: Concept, Definition and Process

Hence, management is assuming a professional character during the last three decades. Management has now developed a specialised body of management theory and philosophy. Management literature is growing in all countries. In fact, management knowledge is the best passport to enter the world of employment.

Management Concepts and Applications/Management

Topis of management have been developed such as, accounting, business law, psychology, statistics, econometrics, data processing, etc. These branches of management profession have enhanced the practical utility of the science of management. Management studies in many universities and institutions of higher learning are recognised as a separate discipline.

Seminars, special courses, training programmes are becoming fashionable and popular for orientation and retraining in management areas, e. There is a growing tendency to select and appoint highly qualified, trained and experienced persons to manage the business in each functional area of management.

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Thus we have today an increasing tendency in favour of management by experts or professionals. Enlightened businessmen have recognised that business management is a social institution and it has social responsibilities to be fulfilled — towards customers, employees, and the public or community. Corporations have now social conscience and awareness.

Concept of Management (Part 1)

Consumer-oriented marketing concept is the reflection of a corporate code of conduct. Pressure of consumerism, trade unionism, public opinion, and legislation are definitely inducing the management to evolve a code of ethics. We have now Business Management Associations in many countries to promote the spread of knowledge in all management areas and to build up the bright public image of managerial profession.

Followers of Fayol gave other principles of management such as universality of management, control by exception, equality of authority and responsibility, power and accountability and co-ordination. Thus we substitute motivation for command. Direction and command are not enough to get things done through people. The manager of today has to encourage, communicate, develop and stimulate his employees to secure higher output. Modern management places the greatest emphasis on motivation as the key to productivity. The pattern of management that developed in Du Pont Company had a far-reaching influence on modern business enterprise.

The writings of Taylor and Fayol stimulated further investigations into the theory of management and its application to business. The example of Du Pont provided a pattern that was followed with great success by many other companies. The works of Taylor and Fayol the two pioneers in the evolution of managerial thought are in reality complementary: Whereas Fayol concentrated on the Managing Director and worked downwards on the organisation hierarchy. The environment provides these resources as inputs to a business enterprise. Most of these resources are scarce and have alternative uses. Management has to evolve an optimum combination of these resources or inputs.

These functions constitute the process of management. The basic resources are subjected to fundamental functions of management. Controlling ensures performance as per plan and enables the management to remove the deviations, if any, between the actual results, and expected results. Hence, management has not only to manage the business but also to manage both managers and workers. Motivation and leadership are the two unique managerial functions or activities to ensure maximum use of human resources without sacrificing human welfare and human satisfaction.

It is true that any business is a series of relationships between groups and departments, employees, outside entities that interact with the organization, etc. Rather than having the management concept of business as a war and battlefield, there should instead be one of harmonization between various components of the business model. Task allocation and information expenditure are some examples of organizing a business venture, undertaking or outfit. Any organization is comprised of people, and this staff needs direction , a third management concept.

There must be communication between department heads, plus motivation is required to get the various teams headed in the right direction as set out in the planning stages. Prizes, incentives, commissions, bonuses, even vacation packages can all be motivational tools utilized by managers to effectively direct their employees and staff.

A good manager understands the communication process, and thus knows how to problem solve and build positive interpersonal relationships. Any effective organization, whether operating on the business model or some other function, is really only as good as its workers, staff, technicians, administrators, and managers. A final management concept is that of control. All the staff and workers of a company, at whatever level of job-function, need to have a clear understanding of the performance standards required of them.

Whichever the case, management concepts are almost always an ongoing and continuous operation, with the function of maximizing company objectives and goals. The company is truly a series of relationships, and ensuring the smooth flow of those relationships can be challenging at best! Efficient and successful implementation of these management concepts will guarantee company success.